Thursday, November 8, 2012

This Compendium contains a wealth of information on topics
including energy tax incentives; energy storage for power grids
and electric transportation; privacy and cybersecurity for smart
meter data; EPA’s mercury and air toxics standards; lighting
industry trends; federal agency authority to contract for electric power
and renewable energy supply; potential energy sources qualifying
under the Clean Energy Standard; EPA’s proposed rule for
cooling water intake structures; and a discussion of whether biopower
is carbon neutral.

The electric power industry is in the process of transformation. Since
1978, technology improvements, changes in the economics for generating
electricity, and new federal laws and regulations (such as the Public
Utility Regulatory Policies Act of 1978, the Energy Policy Acts of 1992
and 2005, the Energy Independence and Security Act of 2007, and Federal
Energy Regulatory Commission (FERC) orders, have created a new
competitive landscape for electricity. Competition is occurring on the
wholesale level, and some states have moved toward retail competition.
Other states have retreated from open markets due to concerns over impacts
on power prices. Congress continues to face the issue of how much to
intervene to ensure a reliable and affordable supply of electricity
throughout the United States.

The electric utility system is vulnerable to outages due to system operator
errors, weather-related damage, terrorist attacks, and shortages of
transmission and generating capacity. The blackout of 2003 in the
Northeast, Midwest, and Canada highlighted the need for operations
improvements and greater standardization of operating rules. Pursuant to
the Energy Policy Act of 2005, FERC named the North American Electric
Reliability Corp. as the electric reliability organization required by the
act. The ERO is developing mandatory and enforceable standards for the
sector to ensure bulk power reliability.

Another provision in EPACT05 required the Secretary of Energy to study
congestion on the transmission system. A competitive bulk power market
depends on adequate infrastructure. Transmission systems were developed
for limited movements of electricity, not the regional power transfers
that have become common. Even though transmission of electricity is
considered interstate commerce, siting transmission lines remains the
responsibility of the states. EPACT05 gives the Secretary of Energy the
federal power of eminent domain to obtain rights-of-ways for transmission
lines in designated areas if states do not act to site them. Congress is
expected to continue oversight on the implementation of EPACT05.

The electric power sector is dependent on adequate fuel supply. The power
system has become increasingly dependent on natural gas to fuel new power
plants, raising concerns about dependence on a fuel sometimes viewed as
supply-limited and subject to price volatility. The most abundant domestic
fossil fuel is coal, but the future use of coal is uncertain due to
global warming concerns. Greater use of nuclear power may be constrained
by the cost of building new plants and the availability of federal
financial supports. One answer may be renewable power, but these
technologies are still under development and are dependent on federal
financial incentives. The resolution of these types of issues, which raise
concerns over what kinds of new power plants should be built and how they
should be fueled, may ultimately turn on congressional decisions on
climate change.

Date of Report: September 18, 2012
Number of Pages: 357Order Number: C-12012Price: $79.99

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